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NDB‘s contribution to infrastructure development has been substantial during the last three decades. Having garnered the experience and expertise to cater towards the development process in Sri Lanka, NDB continues to focus on this vital component providing the necessary support that will help towards economic development in the country.
NDB CEO Russell de Mel says, “Since 1979 has played a pivotal role in the Sri Lankan economy by contributing to the economic development through financing of small, medium and long term projects in line with national plans and priorities.
We are committed to promoting key sectors of the economy that are considered of strategic importance to the overall socio-economic development objectives of the country.”
Focusing on projects that directly benefit Sri Lanka, NDB has over the years funded projects in sectors such as energy, plantation, telecommunication, tourism, chemicals, and Plastics and Rubber based industries.
Power and energy sector
Reliable and uninterrupted power supply is a prerequisite for the development drive and rapid economic growth. Renewable sources play an important role in energy generation in the back drop of escalating fossil fuel prices used in thermal power generation. NDB as a development financier has so far funded 24 hydro power projects with a total capacity of 73 MW by providing financial assistance to the value of over Rs. 2.5 billion.
Further, NDB takes pride in being a key player in financing landmark initiatives in the wind power sector in Sri Lanka and was a party to the consortium of bank who funded the first ever wind power project in the country. The division has approved facilities to a value of Rs. 1.5 billion to the wind power sector which is considered as up-coming renewable energy source within the past few years. The division played a lead role in arranging finance for a 9.8 MW wind power plant in Kalpitiya along with two other banks. NDB’s total commitment in this project by way of term loans and investment in equity through its group companies is significant.
In addition to the hydro power and wind power sources presently available, NDB also initiated discussions during the last year for financing of other forms of renewable energy projects such as bio-mass energy, waste to energy and solar energy, which are new to the country.
In keeping with its strategy to fund the projects in the region, NDB also approved a facility of USD 10 million to take part in a syndicated debt facility arranged by the investment banking arm (NDBIB) for a power project in Bangladesh. This has created an opportunity for the Bank to partner with its long standing clients to expand their business to the South Asian region as well.
Leisure Sector
The economic revival of the North and the East following the cessation of hostilities has created unprecedented opportunities for project financing. NDB has already funded two hotel projects in Passekudah in the East. The three star hotel is with 26 rooms, a diving school and a eight lane swimming pool with international standards. The five star hotel consists of 50 luxury rooms with all amenities overlooking Passekudah lagoon. In addition, NDB has also funded a 18 roomed luxury boutique hotel with in-house tennis playing facilities in Hikkaduwa through its term loan facilities. NDB is proud to take part in the economic revival of north and east as well as the reawakening of the tourism industry after long years of lull performance. NDB is also planning to finance three more hotel projects in Kalutara, Chilaw and Jaffna. During the year 2011, NDB has approved term loan facilities to the value of Rs. 460 million to the leisure sector.
Manufacturing sector
With the North and East being reawakened the spill over effects on the entire economy resulted in other types of manufacturing facilities also attracting investments. Interestingly very unique projects with novel business ideas were seen being developed and NDB its experience in the development banking over 30 years took initiative in assisting these business ideas with long term financial assistance. One such project NDB was involved in is the first ever Bamboo flooring manufacturing project for the export market. A term loan has been approved to meet the capital expenditure including plant and machinery for the manufacturing plant. A similar novel project that NDB is proud to be a financial services partner is a bicycle assembling plant which is 100% export oriented for the European market. In addition NDB also diversified into rubber and rubber products sector for which foreign currency loans were granted for the expansion of two glove manufacturing projects in Avissawella and Biyagama which is again an export oriented operation.
Food and beverages sector
Virgin Coconut oil is totally free of additives and chemicals and is a revolutionary product that has captured attention of food, cosmetic and pharmaceutical companies all over the world as an input. With the demand surging ahead, the Sri Lankan entrepreneurs have successfully capitalised this prospect and this provided NDB with great opportunity for contributing to the agriculture related food and beverages industry. NDB offered financial assistance to purchase machinery required for this project which is entirely export oriented.
With 58 projects approved to the value 13 billion in 2011, NDB intends continuing its active involvement in the economically significant and commercially viable projects in Sri Lanka, contributing towards the economic development of the nation.